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Tag: Trading Advice

The best binary options trading advice you’ll ever get

The recent enormous growth of the binary options market has attracted many new customers from all walks of life. The idea behind the heavy marketing displayed by binary brokers is that everyone can get rich from trading fast paced options.
Obviously this is the message almost each and every broker wants you to hear, but in the binary business it has been ever more hammered in the mind of potential customers since you get to start with so little money (from $10 sometimes) and don’t need any specific program or set of skills.

Since it’s so easy to access, many have been lured into thinking that binary options trading is extremely easy and a great way to make some extra bucks with little to no risk. Of course, risk is inherant with everyform of trading and binary options is no different. Trading on the financial markets is one of the most lucrative oportunities available today and binary options makes it accesable to the masses but before you go out and deposit with a broker, make sure you go in with a plan before you become another statistic.

The best advice you’ll ever get

Here is the advice, write it down, hang it on a wall, tattoo it on your arm (no, please don’t do that): You should treat binary option trading like a business. Every trade should be analyzed and managed as if your life were depending on it.
Binary trading is not super easy. You won’t get rich over night. You won’t make thousands of dollars from a $10 account in 2 weeks. You won’t win every single trade.

Trading, whatever the form (binary, forex, stocks, etc.) is a business. You need to go in with a plan and follow it to a T.
Before jumping head first into the binary trading world, sit down and write a decent plan. In this plan should be the following:

– How much money can I safely invest?

– How much money do I want to earn per month (be reasonable)?

– How much money can I risk per trade?

– Which strategy will I use, and why?

– How will I test the validity and profitability of that strategy before investing any money?

Once you have answers to these questions, you’ll be ready and far ahead of anyone who jumps into binary trading with big dreams but no plan at all.

A simple binary options strategy that works

Binary trading, in principle, is a pretty simple way of trading. It’s easily understandable, doesn’t require much knowledge to place a few trades and is extremely easy to access. Anyone can make an account within a few minutes, deposit a few bucks and start trading.
Obviously the trouble comes when it’s time to actually make some money! That’s where real traders will have an edge versus the recreational “let’s deposit and see what happens” types of traders.

Building a working and profitable binary options strategy can be a drag. The way most traders do it is by opening an MT4 charts or Freestockcharts.com (any broker) and fashion a strategy that relies on a few indicators plotted on these charts.
In this article, we’re going to save you the trouble of finding out what works and lay a sample out for you.

Strategies that work in binary trading

The best binary trading strategies are momentum based. This simply means that you should be looking for strong short momentum outbursts in the market and trade these off the binary market.
The way to spot a momentum trade is to have simple indicators and/or lines plotted on your charts. The purists will tell you to only rely on support or resistance breaks (and they are right), but that might be too difficult for you if you’re a beginner.

What you could do instead is plot an 18 EMA (exponential moving average) for instance. Each time a candle breaks the EMA and closes on the other side, you place a momentum (ie: short term) trade on your binary platform.
What were aiming to do is take advantage of the people doing the exact same thing in the “real” market, and basically take advantage of all the big positions the big players place when this happens, which pushes the market further. You capitalize on that strong market move, manage your risk and then move on to the next trade.